Tax terminology in Latin America represents a big group of words that differs from a country to another. For this reason, in this particular region, tax control can be difficult for Multi-Latin companies. They, therefore, find out that they need the LatamReady SuiteApp in order to succeed in Brazil, Colombia, Mexico, Argentina, and many more countries in Latin America. Let’s explain one of these difficult concepts involved in the daily tasks, E-invoicing.
Beyond the classic definition
When we talk about E-invoicing, we refer to electronic documents, which is a legal requirement needed to issue debit memos, credit memos, withholding taxes, etc. This document is issued in a specific format, called XML, that is delivered by every single company when a sale is carried out. Moreover, it’s really important to mention some benefits that e-invoicing provides: first of all, the reduction of data errors and the improvement of fraud prevention, secondly the optimization of payment processes and finally lower audition costs.
The Past vs E-invoicing
In the past, and currently in some LatAm countries as well, the invoice procedure involves multiple steps. For instance: creating an invoice using a template, printing it, sending it to the accounting office, scanning it to the system and archiving it. All these complex processes have been reduced with E-invoicing. Indeed, the invoice is sent out from your computer to the tax system through the tax service. Without any doubts, E-invoicing revolutionized the Purchase-To-Pay process.
E-invoicing: The weapon to fight against tax evasion
Nowadays, E-invoicing is mandatory in most LatAm countries, as the number of countries that are promoting this legal regulation is growing. The main reason why governments are taking this decision is that e-invoicing represents a big tool to control companies’ procedures. As we already know, e-invoices provide a specific file (XML) that is sent to the tax authority, this information is used to control transactions and finally avoid tax evasion, a really common problem in the region.
It’s clear that e-invoicing represents a whole set of aspects to keep in mind but with the help of the LatamReady SuiteApp, all this process is simplified, making multi-latin companies’ jobs easier and faster. The experts in the area have considered all the details in order to satisfy LatAm requirements, don’t wait for anymore.
Want to know more about the tax system in LatAm from the only provider of a native NetSuite SuiteApp for LatAm tax compliance in the entire region? Go to www.latamzone.info
Watch the full webinar here https://youtu.be/C7-RP7ISuKg
Also, check this! https://latamready.blog/2019/07/26/latin-american-tax-compliance-within-netsuite-the-race-against-time-is-on/